21.03.2018

The best time to invest your money is now

You have decided not to simply save your money and earn interest on it but instead to invest in shares and funds etc. to generate a return. But when is the best time to shift from being a saver to an investor? Is there actually a “right” time to invest your money? One thing is clear: waiting too long does not generally pay off for investors.

“If only I had…”

Everything always seems so simple with the benefit of hindsight: “If only I had invested my money in shares in company X, I would have generated an incredible return and doubled by assets by now.” This type of thing is often heard. However, even for experts, it is difficult, if not impossible, to determine the “right” time in advance. Major price gains usually occur on a few specific days and cannot be predicted in most cases. Determining the “right” day on which to make a financial investment is therefore virtually impossible or pure chance. It is much more important for investors to be clear about their investment goals and investor profile and to stick to their strategy long-term.

Benefiting from the cost averaging effect

Once you have decided where you wish to put your money, you can start investing. Not investing all your assets in one go but instead staggering investment can be the best approach. If you wish to invest long-term, you can break your money down into tranches and, for example, invest a certain amount monthly, quarterly or annually. This also enables you to even out price fluctuations. Even if you don’t wish to invest with a fixed plan but instead want to retain the greatest possible flexibility and to be able to invest precisely when you feel drawn to the stock market, the principle that waiting too long does not generally pay off for investors applies. The sooner you start investing, the longer you’ll benefit from interest, returns and dividends.

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